US MA contracts to roll over in March from February

HOUSTON (ICIS)--March contract prices for maleic anhydride (MA) will roll over from February, market sources agreed in the week that ended on 26 February.

MA is assessed by ICIS at 93.20-99.20 cents/lb ($2,055-2,187/tonne, €1,562-1,662/tonne).

Market participants are almost uniformly in agreement that supply and demand havebeen relatively balanced for many months, going back to the third quarter of 2012.

The only factor that might have changed the equation was the price for primary feedstock normal butane, also called n-butane, which underwent a sharp rise in the final weeks of 2012 and earlythis year. More recently, however, the pricehas become morestable andhas even seen some slight movement downwards.

One producer said thatif the price of normal butane continuesto show a steady decline, buyerswill probablybegin pressing for a reduction in the MA price innext fewmonths.

Another producer noted that the prime season for the production of unsaturated polyester resin (UPR), also calledglass fibre, will begin in March. Typically, the prime UPR season lastsuntil June or July. UPR, which is extensively used in the manufacture of automobiles and boats, is a key downstream product for MA.

Major US producers of MA include Ashland, BASF, Flint Hills Resources and LANXESS.